Successful implementation of JIT system has brought about tremendous results including: (choose all that apply)

Increase national GDP 50%

Increase productivity

Eliminated wars

Reduced lead times (such as 21 days to deliver a product to just 3 days)

Reduced inventories

Requires no changes in the cost accounting management system

Reduced setup times (such as from hours to minutes)

Increase quality (by reducing defects as much as 80%)

Reduced the importance of suppliers

Decreases the reliance on standards and variance analysis

JIT is what?

A push-through system

A demand-pull system

Fill in the blanks: The objective of JIT manufacturing is to eliminate storage of inventories by producing a product only when it is needed or ordered and only in the quantities demanded by Customers. Demand pulls products through the manufacturing process. Each operation produces only what is Needed to satisfy the _________ of the next operation. No production takes place until a signal from the succeeding operation is received. Parts and materials arrive ____ ___ _____ to be used in production. JIT assumes that all costs other than _________ are driven by time and space drivers and JIT focuses on eliminating waste such as these. JIT purchasing requires __________ to deliver parts and materials just in time to be used in production. Thus, the supplier linkage is ____________. One effect of successful implementation is reduced _________ all across the United States (fell from 26% of GDP to 15% of GDP). Traditionally inventories of raw materials are carried so that a firm can take advantage of quantity ________ and hedge against future price increases. The objective was to lower the _________ of inventory. The JIT solution is to negotiate long term _______________ with a few chosen suppliers located ________________ to the production facility.